What's Happening?
The summer of 2025 has seen a notable shift in the European hotel industry, with travelers exhibiting new booking behaviors and spending patterns. An analysis by RoomRaccoon, which reviewed over 600,000 reservations from 2,000 independent hotels across Europe, revealed that guests are planning their holidays earlier, extending their stays, and spending more on additional services. The average booking lead time increased to 53 days, up from 42 days in 2024, indicating that travelers are planning their trips nearly two months in advance. This trend is particularly evident in countries like the UK, the Netherlands, and Spain. Additionally, extended stays have become more common, with longer stays, particularly those of three nights or more, gaining popularity. In Southern Europe, especially in Spain, the trend towards longer holidays is evident, with 5+ night stays increasing from 9% to 11%.
Why It's Important?
This shift in booking and spending behavior presents both opportunities and challenges for hoteliers. The increased lead time allows hotels to adjust their pricing strategies more effectively, potentially leading to better revenue management. However, the decrease in the average daily rate (ADR) from €140 in 2024 to €125 in 2025, despite a rise in occupancy rates, suggests that hotels need to find new ways to maintain profitability. The focus on early bookings, extended stays, and strategic upselling could help hotels capitalize on these trends. Ancillary revenue has also seen a 5% increase year-on-year, with late check-out and early check-in emerging as significant revenue drivers. This indicates a growing demand for personalized and value-added services, which hotels can leverage to enhance guest experiences and increase revenue.
What's Next?
Hoteliers are likely to continue adapting their strategies to capture demand and drive profitability. This may involve further emphasis on early bookings and extended stays, as well as exploring new upselling opportunities. The focus on personalized services and unique experiences is expected to grow, with hotels potentially expanding their offerings in areas such as wellness, family-oriented add-ons, and pet-friendly services. As the gap between weekend and weekday performance narrows, hotels may also look to optimize their pricing and marketing strategies to boost midweek occupancy and revenue.
Beyond the Headlines
The evolving booking and spending patterns in the European hotel industry could have broader implications for the global hospitality sector. As travelers increasingly seek value and unique experiences, hotels worldwide may need to rethink their service offerings and marketing strategies. The trend towards longer stays and early bookings could also influence travel-related industries, such as airlines and tour operators, prompting them to adjust their operations and pricing models to align with changing consumer preferences.
